According to Thomson Reuters, U.S. GDP (gross domestic product) should experience another year of growth in 2018. In fact, analysts are predicting GDP growth of around 2.2% this year. You can find this prediction, as well a flurry of others, in their annual study:
As with all analysis of U.S. GDP, the proof will be at the end of the year. But based on what we are seeing so far, 2018 should be another year of economic expansion.
But what does this mean to you - the owner of a business - today? Well hopefully, it means that your industry and end markets will likewise experience growth.
Most importantly, it also means that buyers of businesses will most likely continue to be very active this year. Keep in mind that buyers buy when they have confidence in the economy. So, recessions are usually bad for buyer activity.
The really interesting thing that we are seeing is that all of the factors that influence seller’s markets are in convergence right now:
But sadly, as with most things, seller’s markets don’t last forever. History is littered with deals that were never completed before the recessions of 2000 and 2009 reared their ugly heads. Some of those companies that waited too long are no longer with us. If they are, many are just now recovering to where they were in 2008 in terms of revenue and profits.
One common trait entrepreneurs nearly all have is unbridled optimism. And really short memories.
If you are the owner of a business today, you really need to consider how much longer you want to wait out this M&A seller’s market. This is especially true if you are a baby boomer.
According to some estimates, nearly 60% of the 15 million privately held businesses in the U.S. are owned by a person born before 1964. That means that over the next 10-15 years or so, around 9 million of these folks will either need to find a buyer, pass the business on, or close the doors.
The ones that take the latter two options will be hurt the most; those that take the first, by planning for and creating an effective exit strategy, will reap the greatest rewards.
Be sure that you and your family are prepared for your exit by attending a Generational Equity exit planning conference. Investing a few hours of your time at one of our meetings could be the best thing you have done in years.
To learn more about who we are and our conferences, please use these links:
And remember this: If you don’t know where you’re going, any road will get you there. But where is the “there” that you want? Don’t end up regretting your exit!
By Carl Doerksen, Director of Corporate Development at Generational Equity.
© 2018 Generational Equity, LLC. All Rights Reserved.
The information we learn from customers helps us personalize and continually improve your experience at gencm.com. Here are the types of information we gather.
Information You Give Us: We receive and store any information you enter on our Web site or give us in any other way. We do not sell or rent your personal information to others without your consent. We use the information we collect only for the purposes sending promotional information, enhancing the operation of our site, serving advertisements, for statistical purposes and to administer our systems. We DO NOT use third parties to provide customer service, to serve site content, to serve the advertisements you see on our site, to conduct surveys, to help administer promotional emails, or to administer drawings or contests, but reserve the right to do so in the future without advance notice. Our computer system protects personal information using advanced firewall technology.
Information from Other Sources: For reasons such as improving personalization of our service, we might receive information about you from other sources and add it to our account information.
Generational Capital Markets LLC may license the use of its intellectual property including but not limited to its name, likeness, and logo for the use of affiliated offices. Such affiliated offices may not be owned, controlled, managed, supervised or staffed by employees, officers, or agents of Generational Capital Markets, L.L.C. Affiliated offices may be independently owned and operated. For more information about a particular office, please contact Generational Capital Markets LLC at is office in Dallas, Texas.
This page may contain other proprietary notices and copyright information, the terms of which must be observed and followed.
INFORMATION ON THIS WEB SITE IS PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE ABOVE EXCLUSION MAY NOT APPLY TO YOU.
Information on this web site may contain technical inaccuracies or typographical errors. Information may be changed or updated without notice. Generational Capital Markets may also make improvements and/or changes in the products and/or the programs described in this information at any time without notice.
Generational Capital Markets does not want to receive confidential or proprietary information from you through our web site. Please note that any information or material sent to Generational Capital Markets will be deemed NOT to be confidential. By sending Generational Capital Markets any information or material, you grant Generational Capital Markets an unrestricted, irrevocable license to use, reproduce, display, perform, modify, transmit and distribute those materials or information, and you also agree that Generational Capital Markets is free to use any ideas, concepts, know-how or techniques that you send us for any purpose.
Information Generational Capital Markets publishes on the World Wide Web may contain references or cross references to other products, programs and services that are not announced or available in your country. Such references do not imply that Generational Capital Markets intends to announce such products, programs or services in your country. Consult a Generational Capital Markets representative for information regarding the products, programs and services which may be available to you.
Generational Capital Markets makes no representations whatsoever about any other web site which you may access through this one. When you access a non-Generational Capital Markets web site, please understand that it is independent from Generational Capital Markets, and that Generational Capital Markets has no control over the content on that web site. In addition, a link to a non-Generational Capital Markets web site does not mean that Generational Capital Markets endorses or accepts any responsibility for the content, or the use, of such web site. It is up to you to take precautions to ensure that whatever you select for your use is free of such items as viruses, worms, trojan horses and other items of a destructive nature.
IN NO EVENT WILL Generational Capital Markets BE LIABLE TO ANY PARTY OR ANY DIRECT, INDIRECT, SPECIAL OR OTHER CONSEQUENTIAL DAMAGES FOR ANY USE OF THIS WEBSITE, OR ON ANY OTHER HYPERLINKED WEBSITE, INCLUDING, WITHOUT LIMITATION, ANY LOST PROFITS, BUSINESS INTERRUPTION, LOSS OF PROGRAMS OR OTHER DATA ON YOUR INFORMATION HANDLING SYSTEM OR OTHERWISE, EVEN IF WE ARE EXPRESSLY ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
Furthermore, all information contained within this website is the property of Generational Capital Markets.
Honored to win Investment Banking Firm of the Year 3 years running.
Over 50 awards and counting.
Sign up to receive regular email updates, industry-leading insights and details on complimentary M&A executive conferences in your area from our award-winning team
Success, you have been added to our list.